Mar 15
Major tax reform legislation was signed into law at the end of 2017 and resulted in sweeping changes to the tax code for both individuals and businesses. The legislation impacts not only federal income taxes but also the estate, gift, and generation-skipping transfer taxes.
Individuals
The tax act implemented seven tax brackets: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. These brackets also have higher income breakpoints, which are intended to lower the tax assessed. The standard deductions were nearly doubled; however, the law eliminated the $4,050 per person personal exemptions. State and local tax deductions are now capped at $10,000. Given these facts, far fewer taxpayers will be itemizing their mortgage interest, state and local taxes, charitable contributions, and other deductions, instead relying on the standard deduction.
Additional changes include (i) the child tax credit being doubled to $2,000 and made partially refundable; (ii) mortgage interest deductions being limited to $750,000 of new debt; and (iii) home equity loans being deductible only if used to build or improve a home.
Estate Planning
The law doubles the estate, gift, and GST tax exclusion amounts to $10 million (to be adjusted for inflation from a base year of 2010). For 2018, the inflation-adjusted amount will be $11.2 million. Effective as of December 31, 2025, the increased exclusion amounts will sunset, returning to a $5 million inflation-adjusted amount.
Businesses
Businesses should be aware of the provisions that have changed and plan now for how they affect the business moving forward. The corporate rate cuts are significant as the 2017 tax act provides for a 21% flat C corporation tax rate. In addition, no special tax rate is applicable to personal service corporations.
Businesses conducted as sole proprietorships, partnerships, or S corporations are subject to a special deduction under the 2017 legislation, generally equal to 20% of the qualified business income received by the individual from a pass-through business. Congress, however, placed income limits and conditions that affect the receipt of the deduction in certain circumstances.
The tax changes under the new law are far reaching and stretch beyond the coverage in this article. Please contact the attorneys at Clark, Mize & Linville, Chartered to schedule a convenient time to discuss your planning if you believe that the tax laws changes might impact you, your family, or your business.
Written by: Joshua C. Howard
Related Practice Areas: Wills, Trusts and Estate Planning, Probate and Estate Settlement, and Business Formation and Governance
Mar 11
Dustin J. Denning successfully defended our client, an obstetrician/gynecologist (OBGYN), in a medical malpractice jury trial in which the plaintiff alleged that our client was negligent when performing a laparoscopic assisted vaginal hysterectomy (“LAVH”) during which her small bowel was perforated through and through with a 5 mm optical trocar. The perforation occurred during the initial introduction of the optical trocar into the abdomen, but was not observed intraoperatively during the nearly 2-hour surgery. As compared to traditional trocars that involve the “blind” insertion of a Veress needle and bladed trocar, the plaintiff argued that the optical method is arguably a safer method of obtaining access into the abdominal cavity because the surgeon should be able to visualize each layer of tissue as the tip of the trocar is advanced into the abdominal cavity. The plaintiff alleged at trial that our client deviated from the standard of care in failing to recognize the bowel perforation at the time it occurred and failing to recognize it during the surgery prior to closing up plaintiff.
The plaintiff began showing signs consistent with a post-operative ileus the day after surgery (Post-Op Day 1), and her condition continued to worsen until she was returned to the operating room the morning of Post-Op Day 2 for exploratory surgery that revealed the through and through small bowel perforation. The plaintiff developed sepsis and other significant complications following the second surgery but recovered and was discharged from the hospital 35 days later. The plaintiff sought approximately $870,000 at trial.
We defended the case by showing that while our client preferred the optical port because he felt it was a safer alternative to the “blind” approach, the optical port is still not without risks, including injury to the bowel, and that such a complication occurred absent negligence on the part of our client. We demonstrated that the layers of tissue through which the optical trocar passes can be distorted for various reasons, including the patient’s body habitus, and that failing to observe the perforation intraoperatively is not a deviation from the standard of care. Medical literature suggests that perforations go unrecognized at the time of surgery in 30-50% of all cases.
After a four-day jury trial, a Riley County, Kansas, jury agreed and returned a verdict in favor of our client after deliberating about 45 minutes.
Jan 25
Dustin J. Denning successfully defended our client, a general surgeon, in a medical malpractice jury trial in which the plaintiff alleged that the surgeon was negligent when performing a colostomy takedown with primary anastomosis. This procedure is designed to reconnect the rectum to the descending colon so that the patient no longer has a colostomy bag. The plaintiff alleged that the surgeon deviated from the standard of care by stapling the posterior vaginal wall when forming the anastomosis. She alleged that the stapling error caused her to develop rectovaginal fistulas, which is a communication, or opening, between the rectum and vaginal canal, that allowed the passage of stool and gas through the vagina. The plaintiff had to undergo additional surgeries to repair the fistulas. She sought $500,000 at trial.
We defended the case by showing that the patient developed a leak of her anastomosis, which is a known surgical complication that occurs in about 5% of all anastomotic procedures. The leak led to the development of an abscess, which then led to the development of the fistulas, through no fault on the part of the surgeon. We demonstrated to the jury that the surgeon would have had a clear view of the rectal stump that was being stapled to the descending colon using the EEA stapler double-stapling technique. Reinforcing sutures were applied as well, which gave the surgeon a second opportunity to observe the connection and reassure himself that he did not incorporate the posterior vaginal wall when creating the anastomosis.
After a five day jury trial, a Dickinson County, Kansas, jury returned a verdict in favor of our client after deliberating about 1 hour and 15 minutes.
Nov 01
Clark, Mize & Linville, Chartered, is again pleased to announce that it has been named a Tier 1 law firm, the highest ranking level, for the Salina/Wichita Metropolitan regions in the 2018 Edition of the U.S. News – Best Lawyers® “Best Law Firms.” Firms included in the 2018 “Best Law Firms” list are recognized for professional excellence with persistently impressive ratings from clients and peers. Achieving a tiered ranking signals a unique combination of quality law practice and breadth of legal expertise.
The firm’s Tier 1 rankings are in the areas of Health Care Law and Trusts & Estates Law. In addition, the firm received a Tier 2 ranking in the practice areas of Medical Malpractice Law – Defendants, Insurance Law, Non-Profit/Charities Law and Tax Law, and a Tier 3 ranking in Business Organizations (including LLC’s and Partnerships), Employee Benefits (ERISA) Law and Personal Injury Litigation – Defendants.
Receiving a tier designation reflects the high level of respect a firm has earned among other leading lawyers and clients in the same communities and the same practice areas for their abilities, their professionalism and their integrity. The U.S. News – Best Lawyers® “Best Law Firms” rankings are based on a rigorous evaluation process that includes the collection of client and lawyer evaluations, peer review from leading attorneys in their field, and review of additional information provided by law firms as part of the formal submission process.
Aug 15
Five Selected for Inclusion in The Best Lawyers in America©
Clark, Mize & Linville, Chartered, 129 S. 8th Street, Salina, is pleased to announce that five of its attorneys have been selected for inclusion in the 2018 Edition of The Best Lawyers in America©. Inclusion in The Best Lawyers in America© is based entirely on peer review and recommendations of lawyers with experience working in the same practice areas as those receiving recognition.
Peter L. Peterson has been included since the publication’s inception in 1983 and currently is listed in the practice areas of Trusts and Estates, Non-Profit/Charities Law, Tax Law, and Employee Benefits (ERISA) Law. Previously, Mr. Peterson was selected as the 2013 Best Lawyers in America Lawyer of the Year in the Wichita/Salina Area for the practice area of Trusts and Estates.
John W. Mize has been listed since 1995 in the practice area of Health Care Law. Mr. Mize has also been selected as the 2018 Best Lawyers in America Lawyer of the Year in the Wichita/Salina Area for the practice area of Health Care Law.
Eric N. Anderson has been listed since 2013 in the practice areas of Business Organizations (including LLCs and Partnerships) and Trusts and Estates.
Dustin J. Denning has been listed in the practice areas of Medical Malpractice – Defendants and Personal Injury Litigation – Defendants.
Peter S. Johnston has been listed in the practice areas of Medical Malpractice – Defendants, Personal Injury Litigation – Defendants, and Insurance Law.
Jun 25
Dustin J. Denning successfully defended our client, an Advanced Registered Nurse Practitioner (“APRN”), in a jury trial in which the patient, who was also an employee at the APRN’s clinic, alleged that the APRN was negligent in failing to assess and diagnose the patient, or immediately refer the patient to the Emergency Room, when she was allegedly suffering from acute stroke-like symptoms. The patient and her attorney argued that failing to do so deprived the patient of the opportunity to receive the clot-busting drug, Tissue Plasminogen Activator (TPA). As a result, she suffered severe and permanent physical impairment to the left side of her body. The patient sought over $650,000.00 at trial.
We successfully established through several medical records and witness testimony that the patient’s stroke symptoms began at least 2 days before the alleged reported onset of symptoms. Because of that, it caused the patient to be beyond the 3 to 4 ½ hour window for the safe administration of TPA. The patient also failed to follow up with the various imaging recommendations offered to her by the APRN. The patient’s prior neurological problems from cervical spine disc disease was also a significant complicating factor in diagnosing the patient. We offered expert testimony from a neurologist, an APRN and a neuroradiologist. Relying on parenchymal enhancement on a subsequent MRI of the brain, our neuroradiology expert opined that the stroke indeed started at least 2 days before the alleged onset date of symptoms.
After a five day jury trial, the Cloud County, Kansas, jury returned a verdict in favor of our client after deliberating about 40 minutes.
Oct 26
Peter S. Johnston of Clark, Mize & Linville, Chartered recently obtained a defense verdict from a jury on behalf of our client, a urologist, in a medical malpractice case in which the plaintiff alleged that the physician misdiagnosed and mistreated a renal abscess. The plaintiff presented expert testimony from physicians from northern California and Pittsburgh. They asked the jury to award more than $2.4 million in damages. Following a seven-day trial and after deliberating nearly five hours, the jury returned a verdict in favor of our client.
Aug 16
The Law firm of Clark, Mize & Linville, Chtd., is pleased to announce that Jessica L. Stoppel recently joined the firm as a lateral associate practicing primarily in the areas of estate planning and business law. The firm also recently hired new associate Jeffrey A. Norris who will practice in the areas of estate planning, probate and trust administration, business planning, real estate and employment law.
Originally from Gorham, Kansas, Jessica received her Bachelor of Science degree from Kansas State University and her Juris Doctorate from the University of Denver Sturm College of Law. Before joining the firm, Jessica was in private practice with an estate planning law firm in Dodge City, Kansas for the past three years.
Jessica and her husband, Blake Stoppel, reside in Salina with their two dogs, Bella and Mack.
A Salina native, Jeffrey A. Norris received his Bachelor of Science degree (summa cum laude) and Master of Arts degree from Kansas State University. His Juris Doctorate (cum laude) was received from Washburn University School of Law. Prior to going to law school and joining the firm, Jeff worked in NCAA Compliance for K-State Athletics.
Jeff and his wife, Laine Norris, reside in Salina.
Aug 16
Clark, Mize & Linville, Chartered, 129 S. 8th Street, Salina, is once again pleased to announce that four of its attorneys have been selected for inclusion in the 23rd edition of The Best Lawyers in America©. Inclusion in The Best Lawyers in America© is based on the ratings and recommendations of lawyers with experience working in the same practice areas as those receiving recognition.
Peter L. Peterson has been included since the publication’s inception in 1983 and currently is listed in the practice areas of Trusts and Estates, Non-Profit/Charities Law, Tax Law, and Employee Benefits (ERISA) Law. Previously, Mr. Peterson was selected as the 2013 Best Lawyers in America Lawyer of the Year in the Wichita/Salina Area for the practice area of Trusts and Estates.
John W. Mize has been listed since 1995 in the practice area of Health Care Law. Previously, Mr. Mize was selected as the 2011 Best Lawyers in America Lawyer of the Year in the Wichita/Salina Area for the practice area of Health Care Law.
Eric N. Anderson has been listed in the practice areas of Business Organizations (including LLCs and Partnerships) and Trusts and Estates.
Peter S. Johnston has been listed in the practice areas of Medical Malpractice – Defendants, Personal Injury Litigation – Defendants, and Insurance Law.
Jun 22
The Kansas Supreme Court has appointed Peter S. Johnston of the firm to the Kansas Board of Law Examiners for a five-year term that starts July 1, 2016.
The 10-member Kansas Board of Law Examiners is composed of both judges and lawyers. It manages and grades a twice-yearly bar examination and conducts hearings on applicants’ character as well as fitness to practice law. It also makes recommendations to the Supreme Court on policies and procedures related to bar admission.
